Rise in material prices hit project execution and company margins

With more than 60 per cent rise in steel and bitumen prices and over 30 per cent rise in cement and diesel prices since the beginning of this year, CW connects with analysts, consultants, builders and contractors to get an overview of the impact on projects and company margins.Builders and contractors are in a battle to complete projects. Over the past couple of months (January-March 2022), the price of steel (per mt) has increased by about 63 per cent, cement (Rs per bag, Bihar) has gone up by approximately 36 per cent, bitumen (HPCL Vizag Rs/MT) surged by about 61 per cent and high-speed diesel (Rs per litre) has sky-rocketed by about 30 per cent.Going by recent reports, price points have hit the industry hard in recent times, and how! Steel prices have shot up to Rs 86,000-90,000 per tonne. Cement prices have touched Rs 380-400 per bag. Prices of plumbing, electrical, tiles and sanitary materials have doubled. Labour costs have also increased up to 50 per cent. The ripple effect of this price surge has been making headlines:Maharashtra realtors plan to stop constructionDevelopers in Delhi-NCR to halt constructionand there’s been much more...- Shriyal Sethumadhvan To read more, CLICK HERE